New Delhi: In a significant move aimed at bolstering India’s entrepreneurial ecosystem, the Finance Ministry has raised the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from Rs. 10 lakh to Rs. 20 lakh. The enhancement, announced on July 23, 2024, during the Union Budget for 2024-25, underscores the government’s commitment to empowering small business owners and promoting financial inclusion through the PMMY’s core principle of “Funding the Unfunded.”
The revised loan structure includes the introduction of a new category, ‘Tarun Plus,’ designed for loans above Rs. 10 lakh and up to Rs. 20 lakh. Eligible entrepreneurs, who have previously availed of and successfully repaid loans under the existing ‘Tarun’ category, can now apply under ‘Tarun Plus’ to support further expansion of their ventures.
In addition, PMMY loans up to the new Rs. 20 lakh ceiling will receive guarantee coverage under the Credit Guarantee Fund for Micro Units (CGFMU), providing added security to lending institutions and encouraging broader financial support for micro-enterprises.